Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results, Beats Expectations By $0.23 EPS

30 Apr 2026, 23:32 by Teresa Graham · The Cerbat Gem

Roku (NASDAQ:ROKU – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23, Zacks reports. Roku had a net margin of 1.87% and a return on equity of 3.40%. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the business earned ($0.19) EPS. Roku’s revenue for the quarter was up 22.4% compared to the same quarter last year.

Here are the key takeaways from Roku’s conference call:

Roku reported a strong Q1 with platform revenue up 28%, EBITDA margins nearly 12%, and $148M free cash flow (~16% margin), and it raised full‑year platform revenue guidance by ~$100M while increasing EBITDA/FCF expectations.
Advertising and subscriptions accelerated (ads +27%, subscriptions +30%), driven by Ads Manager adoption and expanded DSP partnerships (Amazon, DV360, Trade Desk), with management saying a majority of video delivery now flows through third‑party programmatic buyers.
Product changes are boosting monetization — the new home‑screen tests show higher engagement and click‑throughs (marquee ad visibility) and non‑media advertisers now represent ~30% of Roku experience ad revenue, diversifying ad demand.
The devices business faces pressure — device revenue fell ~16% with negative device gross margin, citing lower ASPs and rising memory costs; management says these headwinds were already modeled into guidance and they retain mix and distribution flexibility.
Premium subscriptions are expanding (new launches like Apple TV, Peacock and Mexico) and helping scale, but subscription gross margin has compressed to ~41–42% due to mix, which management expects to hold for the year.

Roku Trading Up 3.5%

Shares of NASDAQ:ROKU traded up $3.94 during midday trading on Thursday, hitting $116.56. The stock had a trading volume of 6,376,115 shares, compared to its average volume of 2,271,425. The company has a market capitalization of $17.18 billion, a PE ratio of 204.49 and a beta of 2.00. The stock has a 50 day moving average price of $100.40 and a two-hundred day moving average price of $100.78. Roku has a 1 year low of $58.55 and a 1 year high of $120.00.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

Positive Sentiment: Q1 earnings and revenue beat consensus: Roku posted $0.57 EPS vs. ~$0.34 expected and revenue of $1.25B vs. ~$1.20B, marking y/y revenue growth of ~22% — a core reason shares moved higher. Roku (ROKU) Q1 Earnings and Revenues Beat Estimates
Positive Sentiment: Advertising strength: Roku began breaking out ad revenue as its own line item; ad revenue rose ~27% to $612.7M this quarter, underscoring advertiser demand and higher monetization per user. Roku Posts Strong Q1 Results Powered By Advertising And Subscriptions Gains
Positive Sentiment: Raising platform outlook: Roku raised its annual platform-revenue forecast, signaling confidence in advertiser spend — Reuters notes the company’s guidance lift sent shares notably higher in extended trading. Roku raises annual platform revenue forecast, shares climb
Positive Sentiment: New/early growth drivers: Roku’s low-cost streaming service “Howdy” has surpassed ~1M subscribers, and Roku continues to add content partnerships (e.g., CW next‑day streaming, WWE NXT on The Roku Channel), supporting user engagement and incremental revenue. Roku’s $3 streaming service, Howdy, reaches 1M subs
Neutral Sentiment: Guidance and outlook: Roku updated Q2 and FY 2026 revenue guidance (roughly in line with consensus on reported items) and hosted a webcast to discuss results; investors will watch margin trends, platform monetization and ad RPMs in upcoming quarters. Listen to Conference Call

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 7,000 shares of Roku stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $107.00, for a total value of $749,000.00. Following the sale, the chief financial officer owned 78,115 shares of the company’s stock, valued at $8,358,305. The trade was a 8.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 728 shares of Roku stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $96.02, for a total transaction of $69,902.56. Following the completion of the sale, the chief accounting officer directly owned 6,947 shares in the company, valued at approximately $667,050.94. The trade was a 9.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 632,182 shares of company stock valued at $67,058,733. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Compound Planning Inc. boosted its holdings in shares of Roku by 32.4% in the fourth quarter. Compound Planning Inc. now owns 3,688 shares of the company’s stock valued at $400,000 after acquiring an additional 902 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Roku by 6.8% in the fourth quarter. Invesco Ltd. now owns 205,115 shares of the company’s stock valued at $22,253,000 after acquiring an additional 13,111 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Roku by 1,836.4% in the fourth quarter. Corient Private Wealth LLC now owns 296,903 shares of the company’s stock valued at $32,211,000 after acquiring an additional 281,570 shares in the last quarter. Strive Financial Group LLC purchased a new stake in shares of Roku in the fourth quarter valued at about $69,000. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in shares of Roku by 11.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 39,147 shares of the company’s stock valued at $4,247,000 after acquiring an additional 3,879 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on ROKU shares. Evercore reissued an “outperform” rating and set a $150.00 price objective on shares of Roku in a research report on Friday, February 13th. Piper Sandler reissued an “overweight” rating and set a $140.00 price objective (up from $135.00) on shares of Roku in a research report on Friday, February 13th. Bank of America raised their price objective on shares of Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. KeyCorp raised their price objective on shares of Roku from $130.00 to $140.00 and gave the stock an “overweight” rating in a research report on Friday, April 24th. Finally, Weiss Ratings raised shares of Roku from a “sell (d-)” rating to a “hold (c-)” rating in a research report on Tuesday, February 17th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $129.25.

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About Roku

(Get Free Report)

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.